Hello everybody,
Today we will talk about the topic of active income and passive income. Everything has advantages and disadvantages.
Yes, passive income has too disadvantages. In this article I will write about it, although they are not quite weighty.
Let's refresh our memory of the concept of passive and active income. Active income - we work and receive money for the work or for the hour which You spend at work.
Passive income - we do anything, and the money comes to our account. But what are the advantages and disadvantages of this incomes?
Active income
Active income isn't worst idea. I have an active income too, but unfortunately this is a trap from which We have to get out.
Advantages
- You don't have to invest in it
- Find a job not very hard
- You will have payments at a certain time or when the work is done
Disadvantages
- When the work stops, income stops too.
- Active earnings require constant attention, as well as a huge amount of effort and time.
- Constant dependence on cash flow
Passive income
passive income difference from active income in that the employee does not take part in the earnings process, only from time to time he checks how the work is going (depending on passive income).
Advantages of passive income
- You don't work and can get a certain income;
- There is no dependence on the state, employer and taxes (but this is not certain);
- You work for passive income only once, and then you get money and enjoy life;
- Great freedom of action.
- Compound interest (reinvestment) can help increase passive income
Disadvantages of passive income
- In order to start receiving passive income, you need to find, acquire and develop a source of passive income (we will talk about this in the next articles).
- Income grows slowly and most people finish of attemps before they get first money.
- Hate from the side of people (just kidding) but there is some truth in it, as soon as you have a flow of money, you will get a lot of hate and you have to be ready for this.
- If you leave your job and live entirely on passive income, but it is small, although it is enough for a living, after some months you will return to work because of boredom.
In conclusion, I would like to say that work is work. We all need money for food, utilities etc. and, of course, to get at least some kind of joy in life.
Again, both incomes are good, just one is simpler, and the other takes time and dedication. You feel a fear that you will not be able to pay for it that is a problem of losing active income. But in this situation passive income in a safe pillow.
Life is an interesting journey and everyone makes their own decisions, that's all. I love this game (life).
Create passive income and enjoy life! Good luck!
Peace in your home.
Niki